What are regulations on the method for determining cost estimate of information technology application projects in Vietnam?

What are regulations on the method for determining cost estimate of information technology application projects in Vietnam? - image from internet

Pursuant to Article 5 of the Circular 04/2020/TT-BTTTT (effective on 09/04/2020) stipulating regulations on the method for determining cost estimate of information technology application projects in Vietnam:

1. Determination of construction costs

Construction costs are determined by estimation based on the norms provided in Section 1 of Appendix 02 enclosed herewith.

2. Determination of equipment costs

a) Equipment costs

- Equipment costs are determined by estimation based on the quantity and categories of equipment to be purchased, and the market price of such equipment as prescribed in Section 2.1 of Appendix 02 enclosed herewith;

- Costs of building, development, upgrading and expansion of internal-use software are determined according to provisions in Section 2.1 of Appendix 02 enclosed herewith.

b) Costs of equipment installation, software setup, testing and calibration/modification of equipment and software are determined according to provisions in Section 2.3 of Appendix 02 enclosed herewith;

c) Costs of database building, data standardization and conversion serving data entry tasks, and inputting of data into the database are determined according to provisions in Section 2.2 of Appendix 02 enclosed herewith;

d) Costs of training in use of equipment/software and costs of training provided for system administrators and operators (if any) are determined according to provisions in Section 2.4 of Appendix 02 enclosed herewith;

dd) Costs of equipment transport and insurance (if any), taxes and fees related to the procurement of equipment are determined by estimation if they are not included in equipment procurement costs;

e) Costs of use, assistance, management or operation of the project’s products or work items before they are accepted and transferred (if any) are determined by estimation according to provisions in Section 2.5 of Appendix 02 enclosed herewith.

3. Determination of project management costs

Project management costs are determined on the basis of cost norms expressed in percentage or by cost estimation (if project management consultants are employed) in conformity with duration and scale of the project, and characteristics of the project management tasks as prescribed in Section 3 of Appendix 02 enclosed herewith.

4. Determination of investment consultancy costs

a) Investment consultancy costs are determined on the basis of cost norms expressed in percentage adopted by the Ministry of Information and Communications or by cost estimation based on the scope and quantity of consulting works, and the plan for performing the contract package as prescribed in Section 4 of Appendix 02 enclosed herewith;

b) Costs of investment consultancy works performed before the cost estimate is prepared shall be determined by values of the concluded consulting service contracts in accordance with state regulations.

5. Determination of other costs

Other costs include costs which are not specified in Clause 1 through 4 of this Article and are determined on the basis of cost norms expressed in percentage adopted by the Ministry of Information and Communications, or by a regulatory authority, or by cost estimation as prescribed in Section 5 of Appendix 02 enclosed herewith.

6. Determination of cost contingency

Cost contingency for additional quantity of works is expressed as a percentage (%) of total amount of construction costs, equipment costs, project management costs, investment consultancy costs and other costs;

Contingency for cost escalation is determined according to the duration of investment in the project (expressed in months, quarters and years).

Cost contingency shall be determined according to provisions in Section 6 of Appendix 02 enclosed herewith.

Best regards!